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Brazil and Argentina are considering co-creating a common currency, but Bitcoin enthusiasts are proposing to adopt Bitcoin (BTC) instead.
over the weekend, financial times The country’s ministers said the proposed currency would “initially move in parallel with the Brazilian real and the Argentine peso.”
Brazilian policymakers have proposed calling the new currency ‘Sur’ (meaning ‘South’), arguing that the currency could ‘facilitate regional trade and reduce reliance on the US dollar’. .the plan is perfill Article co-authored by the respective presidents of Argentina and Brazil, Alberto Fernandez and Luiz Inacio Lula da Silva.
But bitcoiners are proposing to do away with fiat currency altogether. They propose skipping the entire currency creation process by adopting BTC as legal tender.They suggested that the move could benefit all parties from the start.
Gabor Gurbacs, Strategic Advisor at VanEck, said:
Others took a similar position.
However, Coinbase CEO Brian Armstrong I have written ‘Migration to Bitcoin’ ‘maybe the right long-term bet’
While many spoke out against the cryptocurrency exchange chief’s tweet, others expressed their support. Proponents argued that developments like the Lightning Network could help with network problems.
Others suggested that BTC’s “volatility” was exaggerated, especially in relation to LATAM fiat currency.
In fact, there is no shortage of evidence that fiat currencies continue to struggle while crypto adoption is on the rise in both Brazil and Argentina.
Can BTC provide an alternative to inflation-hit LATAM fiat currency?
With inflation surpassing 90% last year and hyperinflation ravaging the Argentine peso, many citizens are turning to cryptocurrency alternatives.
Similar to cryptocurrency investments, stablecoin purchases are on the rise. And more and more citizens are choosing to work for businesses that pay with cryptocurrencies.
Brazil’s own inflation hit a record high last June.
In Brazil, on the other hand, many local governments allow citizens to pay their taxes in cryptocurrencies, and the central government recently gave the go-ahead to using cryptocurrencies as a payment tool.
Argentina’s Economy Minister Sergio Massa told the Financial Times that the currency unification project was launched “as a study of the mechanisms of trade integration”.
But he indicated that other LATAM countries might eventually join, or start similar projects on their own.
“This is the first step in the long road Latin America has to go.”